Surejogi GMS Limited - Limited company accounts 18.2

REGISTERED NUMBER: 04600051 (England and Wales)

Report of the Directors and

Financial Statements

for the Period 1 June 2017 to 31 March 2018

for

Surejogi GMS Limited

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

4

Income Statement

6

Other Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

Directors:

Mrs S Sanger

Ms R Sanger

J P Sanger

G Sanger

Secretary:

J P Sanger

Registered office:

30 Poland Street

London

W1F 8QS

Registered number:

04600051 (England and Wales)

Auditors:

GKP Partnership Ltd

110 Viglen House

Alperton Lane

Wembley

London

HA0 1HD

The directors present their report with the financial statements of the company for the period 1 June 2017 to 31 March 2018.

Principal activity

The principal activity of the company in the period under review was that of providing hotel accommodation and related

services.

Directors

The directors shown below have held office during the whole of the period from 1 June 2017 to the date of this report.

Mrs S Sanger

Ms R Sanger

J P Sanger

G Sanger

Statement of directors' responsibilities

The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with

applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the

directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted

Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors

must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of

affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements,

the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the

company's transactions and disclose with reasonable accuracy at any time the financial position of the company and

enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible

for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of

fraud and other irregularities.

Statement as to disclosure of information to auditors

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies

Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought

to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish

that the company's auditors are aware of that information.

Auditors

The auditors, GKP Partnership Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to

small companies.

On behalf of the board:

G Sanger - Director

27 August 2019

Qualified Opinion

We have audited the financial statements of Surejogi GMS Limited (the 'company') for the period ended

31 March 2018 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of

Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements,

including a summary of significant accounting policies. The financial reporting framework that has been applied in their

preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102

'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted

Accounting Practice).

The financial statements are true and fair except for fixed asset balances and provision for liabilities.

Basis for qualified opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.

Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the

financial statements section of our report. We are independent of the company in accordance with the ethical

requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard,

and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit

evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. We were unable to confirm

the validity of fixed asset balances as presented in the balance sheet. The company has been unable to produce

detailed records of assets they own or control.

The company was unable to prove that a constructive or legal obligation exists for the basis of recognition of a

provision for repairs,

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Report

of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise

explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing

so, consider whether the other information is materially inconsistent with the financial statements or our knowledge

obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or

apparent material misstatements, we are required to determine whether there is a material misstatement in the

financial statements or a material misstatement of the other information. If, based on the work we have performed, we

conclude that there is a material misstatement of this other information, we are required to report that fact. We have

nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the

audit, we have not identified material misstatements in the Report of the Directors.

As described in the basis of qualified opinion section of our report, the company has not maintained adequate records

of their fixed assets and has been unable to justify the balances stated in the financial statements.

Management have not complied with Section 414A of the Companies Act 2006 to provide a strategic report.

Except for the matters described above, we have nothing to report in respect of the following matters where the

Companies Act 2006 requires the auditors to report to the members if, in our opinion:

-	returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors are

responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view,

and for such internal control as the directors determine necessary to enable the preparation of financial statements

that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a

going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of

accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic

alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with

ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and

are considered material if, individually or in the aggregate, they could reasonably be expected to influence the

economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting

Council's website at www.frc.org.uk/auditorsresponsibilities . This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the

Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those

matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent

permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's

members as a body, for our audit work, for this report, or for the opinions we have formed.

Atul Sharma (Senior Statutory Auditor)

for and on behalf of GKP Partnership Ltd

110 Viglen House

Alperton Lane

Wembley

London

HA0 1HD

27 August 2019

Revenue

7,206,385

8,595,896

Cost of sales

(1,268,782

)

(678,589

)

Gross profit

5,937,603

7,917,307

Administrative expenses

(6,677,432

)

(8,594,954

)

(739,829

)

(677,647

)

Other operating income

691,066

-

Operating loss and

Loss before taxation

(48,763

)

(677,647

)

Tax on loss

7

19,745

-

Loss for the financial period

(29,018

)

(677,647

)

Loss for the period

(29,018

)

(677,647

)

Other comprehensive income

-

-

Total comprehensive income for the period

(29,018

)

(677,647

)

Fixed assets

Property, plant and equipment

10

410,705

481,540

Current assets

Inventories

11

29,688

110,212

Debtors

12

24,594,187

23,665,437

Cash at bank and in hand

5,623

11,081

24,629,498

23,786,730

Creditors

Amounts falling due within one year

13

(21,940,756

)

(21,570,029

)

Net current assets

2,688,742

2,216,701

Total assets less current liabilities

3,099,447

2,698,241

Provisions for liabilities

16

(4,653,311

)

(4,223,087

)

Net liabilities

(1,553,864

)

(1,524,846

)

Capital and reserves

Called up share capital

17

1,000

1,000

Retained earnings

18

(1,554,864

)

(1,525,846

)

Shareholders' funds

(1,553,864

)

(1,524,846

)

The financial statements were approved by the Board of Directors on 27 August 2019 and were signed on its behalf by:

G Sanger - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 June 2016

1,000

(848,199

)

(847,199

)

Changes in equity

Total comprehensive income

-

(677,647

)

(677,647

)

Balance at 31 May 2017

1,000

(1,525,846

)

(1,524,846

)

Changes in equity

Total comprehensive income

-

(29,018

)

(29,018

)

Balance at 31 March 2018

1,000

(1,554,864

)

(1,553,864

)

Cash flows from operating activities

Cash generated from operations

1

(52,838

)

12,111

Net cash from operating activities

(52,838

)

12,111

Cash flows from investing activities

Purchase of tangible fixed assets

(1,642

)

-

Net cash from investing activities

(1,642

)

-

Cash flows from financing activities

Amount introduced by directors

29,112

29,746

Amount withdrawn by directors

(29,112

)

-

Net cash from financing activities

-

29,746

(Decrease)/increase in cash and cash equivalents

(54,480

)

41,857

Cash and cash equivalents at beginning of period

2

(130,882

)

(172,739

)

Cash and cash equivalents at end of period

2

(185,362

)

(130,882

)

1.	Reconciliation of loss before taxation to cash generated from operations

Period

1.6.17

to

Year Ended

31.3.18

31.5.17

as restated

£

£

Loss before taxation

(48,763

)

(677,647

)

Depreciation charges

72,477

84,978

23,714

(592,669

)

Decrease/(increase) in inventories

80,524

(75,133

)

(Increase)/decrease in trade and other debtors

(3,565,419

)

894,733

Increase/(decrease) in trade and other creditors

3,408,343

(214,820

)

Cash generated from operations

(52,838

)

12,111

2.	Cash and cash equivalents

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of

these Balance Sheet amounts:

Period ended 31 March 2018

31.3.18

1.6.17

£

£

Cash and cash equivalents

5,623

11,081

Bank overdrafts

(190,985

)

(141,963

)

(185,362

)

(130,882

)

Year ended 31 May 2017

31.5.17

1.6.16

as restated

£

£

Cash and cash equivalents

11,081

20,824

Bank overdrafts

(141,963

)

(193,563

)

(130,882

)

(172,739

)

1.	Change of accounting period

The accounting period for the company has been shortened to 10 months for this reporting period covering 1st

of June 2017 to 31st March 2018.

The accounting period was shortened to achieve a coterminous year end with foreign subsidiaries of the

Mastcraft group.

The comparative figures in these financial statements are not entirely comparable.

2.	Statutory information

Surejogi GMS Limited is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

All amounts presented in these financial statements have been rounded to the nearest £

The company's place of operation is 19 - 21 Great Marlborough St, Soho, London W1F 7HL

3.	Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

4.	Accounting policies

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

These financial statements have been prepared on a going concern basis as management believe the

business will continue trading for at least twelve months from the date of approval of these accounts.

Turnover

Revenue is measured at the fair value of the consideration received or receivable, excluding discounts,

rebates, value added tax and other sales taxes.

Revenue in respect of accommodation is recognised overnight during each night the customer stays.

Revenue in respect of venue hire is recognised when the premises is made available for use to a customer.

Other sales, including restaurant, bar & spa revenue are recognised at the point of purchase by the customer.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Stocks

Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete

and slow moving items.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except

to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the

balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different

from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and

laws that have been enacted or substantively enacted by the period end and that are expected to apply to the

reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that

they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's

pension scheme are charged to profit or loss in the period to which they relate.

5.	Employees and directors

Period

1.6.17

to

Year Ended

31.3.18

31.5.17

as restated

£

£

Wages and salaries

1,685,798

1,884,924

Social security costs

85,952

92,995

Other pension costs

9,758

11,783

1,781,508

1,989,702

The average number of employees during the period was as follows:

Period

1.6.17

to

Year Ended

31.3.18

31.5.17

as restated

91

86

Period

1.6.17

to

Year Ended

31.3.18

31.5.17

as restated

£

£

Directors' remuneration

-

-

6.	Operating loss

The operating loss is stated after charging:

Period

1.6.17

to

Year Ended

31.3.18

31.5.17

as restated

£

£

Hire of plant and machinery

400

-

Depreciation - owned assets

72,477

84,978

Auditors' remuneration

11,800

9,000

7.

Taxation

Analysis of the tax credit

The tax credit on the loss for the period was as follows:

Period

1.6.17

to

Year Ended

31.3.18

31.5.17

as restated

£

£

Current tax:

UK corporation tax

4,194

-

Deferred tax

(23,939

)

-

Tax on loss

(19,745

)

-

8.	Prior year adjustment

An amount of £226,535.67 relating to commissions paid in the prior year has been reclassified from

administrative expenses to cost of sales due to the direct nature of these expenses payable to booking agents.

An amount of £154,455 relating to cleaning costs paid in the prior year has been reclassified from

administrative expenses to cost of sales due to the direct nature of these expenses payable to maintain

cleanliness of rooms and other facilities at the place of operations.

An amount of £92,995 has been reclassified from overall wages expense to social security expense in the prior

year in order to give appropriate comparative information.

The reclassifications described above are aimed to provide more relevant and reliable information to the users

of these financial statements. These changes do not impact the comparative year's retained earnings.

9.	Exceptional items

An amount of £689,320 was written back to profit and loss as a result of old creditor balances no longer being

payable. This amount has been included in other income.

An amount of £422,265 has been written off and included in administrative expenses for old debtor balances

no longer deemed recoverable.

10.	Property, plant and equipment

Fixtures

Plant and

and

machinery

fittings

Totals

£

£

£

Cost

At 1 June 2017

1,062,679

426,097

1,488,776

Additions

-

1,642

1,642

At 31 March 2018

1,062,679

427,739

1,490,418

Depreciation

At 1 June 2017

752,313

254,923

1,007,236

Charge for period

46,555

25,922

72,477

At 31 March 2018

798,868

280,845

1,079,713

Net book value

At 31 March 2018

263,811

146,894

410,705

At 31 May 2017

310,366

171,174

481,540

11.	Inventories

31.3.18

31.5.17

as restated

£

£

Stocks

29,688

-

Finished goods

-

110,212

29,688

110,212

12.

Debtors: amounts falling due within one year

31.3.18

31.5.17

as restated

£

£

Trade debtors

1,331,248

1,214,576

Amounts owed by group undertakings

21,838,368

21,874,040

Other debtors

134,443

640

Prepayments and accrued income

1,290,128

576,181

24,594,187

23,665,437

13.

Creditors: amounts falling due within one year

31.3.18

31.5.17

as restated

£

£

Bank loans and overdrafts (see note 14)

190,985

141,963

Trade creditors

20,220,064

19,012,306

Amounts owed to group undertakings

35,000

827,792

Tax

4,194

-

Social security and other taxes

322,590

28,545

VAT

45,831

296,577

Other creditors

429,343

817,726

Directors' current accounts

29,746

29,746

Accruals and deferred income

34,932

25,800

Accrued expenses

628,071

389,574

21,940,756

21,570,029

14.

Loans

An analysis of the maturity of loans is given below:

31.3.18

31.5.17

as restated

£

£

Amounts falling due within one year or on demand:

Bank overdrafts

190,985

141,963

15.	Leasing agreements

The company pays £3.196m annually as rental for use of its premises to a foreign trust.

16.	Provisions for liabilities

31.3.18

31.5.17

as restated

£

£

Deferred tax

Accelerated capital allowances

78,034

101,973